A Message from the Chairman
Dear Investor,
This week the Society held its 38th Annual General Meeting at which it reviewed its performance over the 12 months ending 30 June 2008.
The year was characterised by a world wide credit crunch and continuing failures of finance companies in the domestic market, which all made for a challenging time. The immediate effect of this was a continuing increase in interest rates, resulting in a write down of the Society's fixed interest investments. This will be recovered over time as interest rates come down - a move that has already started.
Despite the difficult financial market, the Society achieved a surplus from its operating activities. Depositors funds increased to over $39.0 million and the reinvestment rate averaged over 85%. The Directors have continued their conservative investment policy and hold 55% of depositors' funds in cash, short term deposits and negotiable securities. Reserves represent 12% of depositors' funds. From time to time independent expert advice is obtained about the investment portfolio.
The Society was established for the purpose of making loan funds available to parishes and related organisations for capital projects at reasonable interest rates. This remains the reason for the existence of the Society today, and at the end of the financial year there were 49 such loans totalling over $15.0 million.
A very generous bequest of nearly $177,000 was made to the Society by an anonymous depositor, along with a number of other donations and bequests. The Society is very appreciative of these practical expressions of support for its work in helping to grow the church.
The Society has continued to make grant funds available for ministry and mission initiatives in local parishes as well as the wider church. Grants totalled $243,596 for the year which was a significant increase on the previous year and included a $50,000 contribution towards the PCANZ Kids Friendly initiative, support to parishes hosting ministry interns, as well as a number of smaller grants to parishes.
While there is still uncertainty in the financial market, the Society looks to the year ahead with confidence - although the value of the fixed interest investments continues to fluctuate, the Society still shows an operating surplus; has a high level of liquidity; continues to welcome new depositors; has maintained the investment rate; and depositors' funds have continued to increase, and now total over $40.0 million.
None of this would be possible if it were not for the continued loyalty and support of you, our depositors. The Society continues to be a success story for the church, and we acknowledge and thank you for the part you have played and continue to play in this.